The Bank of Japan is planning its monetary policy path after ending its aggressive stimulus program in March, shifting to a more discretionary approach and less emphasis on inflation, according to Jinshi. Although the Bank of Japan is expected to keep its inflation target around 2% until early 2027, the forecast itself is not a strong hint of a near-term rate hike. "It is necessary to look carefully at all kinds of data, not just the inflation outlook," said a source, noting that other indicators such as consumption, wages and the overall economy are also important.